People behind Microsoft, Softbank-backed AI start-up under scrutiny in India for past dealings

BuilderAI is a big technology startup with substantial backing from global investors including Microsoft and SoftBank. Duggal is under suspicion in a money laundering case linked to the collapse of Videocon while Dhoot faces allegations in a loan fraud probe related to the same company.

Builder.ai, established in 2016 and initially known as Engineer.ai, aims to simplify app and website development using artificial intelligence, comparing the process to ordering pizza. The company, based in London, has raised significant funds, notably a $250 million round led by Qatar’s sovereign wealth fund in 2023, amidst a surge of interest in generative AI technologies.

The accusations stem from transactions and activities predating Builder.ai. According to the report, Duggal’s alleged involvement in money laundering is connected to financial dealings between 2008 and 2012, where funds from Videocon were reportedly transferred to a company he founded in India, then allegedly moved to Videocon’s international entities. Dhoot, on the other hand, is implicated in a case accusing him of participating in a scheme to secure fraudulent loans from an Indian bank, facilitated by his uncle, Venugopal Dhoot, and involving the misallocation of funds to various Videocon accounts.

Both Duggal and Dhoot, who met in university and co-founded Nivio, another venture before Builder.ai, deny any wrongdoing. Legal representatives for Duggal argue that his involvement in the alleged money laundering is a misunderstanding, maintaining his cooperation with the authorities. Dhoot’s legal team has similarly dismissed the loan fraud allegations, emphasizing the preliminary stage of the proceedings.

These developments raise questions about the leadership of Builder.ai, although the company and its lawyers have clarified that the investigations do not relate to the startup itself. According to the report, they also stressed that Dhoot’s role in Builder.ai was in recognition of his advisory role and friendship with Duggal rather than as a founding member or executive. Following inquiries about these matters, Builder.ai has made adjustments to public references of Dhoot’s association with the company.